Status of Corporate Governance Implementation

(2) Ta Yih established the Remuneration Committee in December 2011 ,the Audit Committee in June 2020 and the Committee for Susainable Development in November 2024 in accordance with the law, and will evaluate the needs of business to established other functional committees.

(3)Ta Yih approved the Regulations for Evaluating Performance of the Board of Directors and the evaluation method at the board meeting in November 2020. Performance evaluation will be conducted in the first quarter of every year. Evaluation results will be reported at the board meeting in March every year and used as reference for determination of the remuneration provided to individual directors as well as the nomination for the next selection of directors.

(4) The department of finance of Ta Yih determined in accordance with Article 29 (3) of the Corporate Governance Practice Principles the evaluation items for its CPA independency evaluation based on the CPA independency stated in the Certified Public Accountant Act and the Statement No. 10 Integrity, Objectivity and Independence under the Code of Ethics for Certified Public Accountants of the R.O.C. The evaluation items include whether the CPA has a direct, or significantly indirect, financial interest relationship with Ta Yih, whether any loan or guarantee exists between the CPA and Ta Yih or any of its directors, whether the CPA has a close business relationship or potential employment relationship with Ta Yih, and other items. The independency of the CPA to be commissioned by Ta Yih is evaluated through these items. After the evaluation, the resume and independency declaration (stating no violation of the Statement No. 10 of the Code of Ethics) of each of the CPAs who have met Ta Yih’s standards of independency evaluation and are qualified as the CPAs certifying its financial statements will be submitted to the Audit Committee in March every year for review. After the review, such documents will be reported at the board meeting in March every year.

D. Promotion of Corporate Governance

The company has allocated qualified and proper number of corporate governance staffs, and approved CFO, senior mamager, Cheng Ching-Siang to serve as the corporate governance officer to be responsible for handling and promotion of corporate governance related business. The main responsibilities are as follows：

(1) Generally dealing with preparation work for board meetings and Remuneration Committee meetings, including providing directors with the information they need to perform their duties, arranging the agenda, sending notice of meeting to directors, dealing with matters relevant to the meeting, and making the minutes, to facilitate the process of the meeting
(2) Dealing with the matters relevant to a meeting of shareholders: Register the date of the shareholders’ meeting every year within the period provided by the law, prepare and submit the notice of meeting, the meeting manual and minutes by the deadline, and complete the procedure of alteration registration for the amended articles of incorporation or after re-election of directors.
(3) Assisting directors in reporting for duty or pursuing continuing education, providing directors with the information they need to perform their duties, assisting directors in compliance with the law, and dealing with other matters as required by the law, the articulates of incorporation or a contract
(4) Preventing insider trading education promotion：
A). Ta Yih practices education on “Regulations on Preventing Insider Trading” and its related laws to board members, managers and employees related to business at least once every year. In 2025, on Jan 14, Apr 7, July 8, Aug 18, the dissemination of common situations about insider equity transactions in listed companies violate Securities and Exchange Act were offered to the current board members, managers and employees related to business.
B). On 114/2/3, 4/21, 7/21 and 10/28, insiders will be notified via email thirty days before the announcement of the annual financial report and fifteen days before the announcement of the quarterly financial report. From the notification date to No trading of its stocks is allowed during the closed period ending on the date of financial report announcement.
(5)Evaluation for acquiring proper liability insurance for directors, supervisors and managers
(6) Maintenance of the Investors section on the website of Ta Yih
(7) Compliance with the Standard Operating Procedure for Dealing With Requests of Directors established by Ta Yih
(8) Compliance with the Ethical Corporate Management Best Practice Principles and Procedures for Ethical Management and Guidelines for Conduct by Ta Yih
(9)Reviewing the corporate government evaluation indicators announced by the corporate governance center every year to examine how Ta Yih has achieved each indictor

E. Specific Section of Interested Parties, Communication Channels and Response

Ta Yih maintains a great communication with investors, employees, consumers, suppliers and distributors through Chairman’s Mailbox, labor-management meetings, procurement, financial and other units. In addition, Ta Yih has also established the Section of Interested Parties on its website to be an additional channel to communicate with interested parties, and important CSR-related issues concerned by interested parties are properly responded by the spokesman.

The channels provided to communicate with interested parties are as follows:

F. Professional Stock Agency

Ta Yih has commissioned the professional stock agency Department of Agency, CTBC Bank to deal with all the affairs relevant to meetings of shareholders on its behalf since 1997.

G. Public Disclosure of Information

(1) Ta Yih has set up a website to disclose its revenue, financial business data and corporate government information.
(2) Other methods used by Ta Yih to disclose information:

1. Ta Yih has set up a website that is in English.
2. Ta Yih has designated specific staff to take charge of collection and disclosure of its information.
3. Ta Yih has established the system of spokespersons. A spokesperson and an acting spokesperson are designated in the system. The communication channel to Ta Yih’s spokesperson is smooth. Shareholders are welcome to give opinions or make inquiries, by telephone or in writing, about business operation of Ta Yih.
4. The information on the investor conference has been disclosed on the website of Ta Yih.

G. Ta Yih have other important information that is helpful to understand the status of corporate governance implementation (including but not limited to interests of employees, duty of care, investor relationship, supplier relationship, rights of related parties, status of directors and supervisors with continuing education, implementation of risk management policy and risk measurement standards, implementation of customer policy, liability insurance acquired by Ta Yih for directors and supervisors, etc.):

(1) Other important information that is helpful to understand the status of corporate governance implementation:

1. Maintenance of employees’ interests, and duty of care:

(i) Handle employee health insurance and labor insurance, and provide group insurance for employees (medical insurance and accident insurance) at no cost.
(ii) Provided the staff with free health checkups and arranged inspection at the factory by the Tainan Municipal Hospital.
(iii) Provide relevant medical counseling to employees by arranging doctors to station in the factory on a monthly basis.
(iv) Establish a staff welfare committee to handle various employee benefits (such as emergency assistance, wedding and funeral celebrations, and bonuses for three festivals).
(v) Funding for the activities of the Colleague Badminton and Basketball Club .
(vi) Provide the colleagues free flu vaccine injection.
(vii) Sign up special domestic stores and to provide complete and high-quality consumer information to the colleagues.
(viii) A monthly pension is provided in accordance with the law.
(ix) Enhance the professional knowledge of employees and provide on-the-job training for employees.
(x) To avoid the hardships of travelling, free dormitory are provided for employees whom stay far away.
(xi) To guarantee the basic human rights of female employees, measures for sexual harassment prevention, appeal and punishment were set up .
(xii) To create a friendly workplace environment, a special room is allocated for breast feeding (or collection milk) for female employees.
(xiii) To uphold the health of non-smoking colleagues, smoking is completely banned in the factory, and only designated places are allowed for smoking.
(xiv) A labor-management meeting is held every three months in 2023 to coordinate labor-management relations and to promote labor-management cooperation.

(2) Investor Relationship: A specific Section of Investors has been set up on the website of Ta Yih to provide shareholders with corporate information. Suggestions given by shareholders are handled by the staff designated.

(3) Supplier Relationship: The relationship between Ta Yih and its suppliers is harmonious, without any controversy or litigation. Ta Yih has also set up Friendship Club to hold a social gathering, a banquet  for its business partners periodically every year.

(4) Interested Party Relationship: Interested parties may communicate with and give suggestions to Ta Yih to maintain their legal interests.

(5) The status of directors and supervisors pursuing continuing education in 2024 is as follows:

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If you have any investor-related questions, please contact us.

Finance Senier Manager Cheng 
Tel: 886-6-2615151
Fax: 886-6-2644614
Email:joanc@tayih-ind.com.tw

Stock Specialist
Tel: 886-6-2615151#208
Fax: 886-6-2644614
Email:budget@tayih-ind.com.tw